Tax Increment Financing Application Fees

The City shall require a deposit in the amount of $1,000 from the applicant for the City and its consultants to determine the feasibility of providing tax increment financing assistance to the applicant’s project. If the City incurs additional expense in excess of the $1,000 prior to the execution of the development agreement, the City will notify the applicant in writing and the applicant will be required to deposit additional funds.

If the TIF assistance application is approved and the applicant completes the project, the City shall reimburse the applicant’s deposit to the extent permissible under the TIF Act utilizing available tax increment dollars generated by the project.

Tax Increment Financing – (Re)Development Agreement Fees

If it is necessary to provide tax increment financing on a pay-as-you-go basis wherein the City compensates the applicant a predetermined amount for a predetermined number of years, the applicant will be required to pay a portion of the administrative costs associated with the record keeping requirements for the duration of the agreement according to the guidelines established within this ordinance.

If the City provides tax increment financing in the form of an up front payment to the applicant, the refund of the application deposit will be forfeited. If TIF assistance is provided utilizing both forms of financing then the return of the application deposit will be forfeited and the annual fee will be assessed according to the guidelines established within this ordinance.

The annual fee will be determined as follows:

Up to $100,000 in TIF assistance will require an application deposit of $1,000 and annual fee of $500 during the term of the redevelopment agreement when record keeping is required for rebate and/or other financial assistance based on sales tax and/or property tax records.

Over $100,000 and up to $1,000,000 in TIF assistance will require an application deposit of $1,000 and annual fee of one-half of one percent (.5%) of the total approved assistance amount during the term of the redevelopment agreement when record keeping is required for rebate and/or other financial assistance based on sales tax and/or property tax records.

Over $1,000,000 in TIF assistance will require an application deposit of $5,000 and an annual fee of one-quarter of one percent (.25%) of the total approved assistance amount or a maximum of $10,000 per annum during the term of the redevelopment agreement when record keeping is required for rebate and/or other financial assistance based on sales tax and/or property tax records.

Fees will be assessed at the beginning of each year for the duration of the redevelopment agreement. The first annual fee payment will be due upon the date of approval of the redevelopment agreement and every 12 months thereafter during the term of the agreement in order to cover a portion of the administrative costs involved with recording and reporting requirements related to the redevelopment agreement.

City of Wood River Tax Increment Financing Policy and Guidelines

General Policy:

While tax increment financing (TIF) is an important and useful tool in attracting and retaining businesses, it is essential that it is used appropriately to accomplish the City’s economic development goals and objectives. The fundamental principle that makes tax increment financing viable is that it is designed to encourage development which would not otherwise occur. The City is responsible to assure that the project would not occur "but for" the assistance provided through tax increment financing.

It is the policy of the City to consider the judicious use of tax increment financing for those projects which demonstrate a substantial and significant public benefit by constructing public improvements in support of developments that will create new jobs, retain existing jobs, eliminate blight, strengthen the economic base of the City, increase property values and tax revenues, create economic stability, and stabilize and upgrade existing neighborhoods and areas. Priority will be given to projects that are judged to meet all of these goals.

Policy Guidelines:

The following criteria are to be used by the City to evaluate TIF applications:

1. Each TIF applicant must demonstrate that without the use of TIF, the project is not feasible and would not otherwise be completed.
2. The total amount of TIF assistance will not exceed twenty percent (20%) of the total project costs. Total project is the complete project as defined within the TIF assistance application.
3. TIF assistance for public infrastructure is favored.
4. Each TIF application must include evidence that the applicant possesses financial and technical ability to complete and operate the project.
5. Preference will be given to applicants who contribute equity of at least fifteen percent (15%) of the total cost of the project or provide a performance bond for the completion of the project; projects with equity contributions from the developer in excess of fifteen percent (15%) will be viewed more favorably.
6. TIF projects that create jobs with wages that exceed the median income level of Wood River are favored; each TIF applicant will provide the following statistics:
   1. The total number of additional employees that will be hired and potential that they will be hired from the City or local population; and
   2. The skill and educational levels, and range of salary and compensation required for jobs expected to be created.
7. If the project will involve development/redevelopment of vacant land, it should conform with the City’s plans and programs and serve as a catalyst for further, high quality development or redevelopment.
8. Projects involving retail development that is targeted to encourage an inflow of customers from outside the City or that will provide services or fill retail markets that are currently unavailable or in short supply in the City will be viewed more favorably.